The Dubai Financial Services Authority (DFSA) announced on Friday that it had issued a Decision Notice against Al Ramz Capital LLC – a DFSA Recognised Member – for failing to report suspicious transactions. As a result, the DFSA has imposed a fine of USD 25,000 (AED 91,813) on the company.
The case concerns ‘wash trades’ conducted through Al Ramz’s online trading platform, where there was no change in the ultimate beneficial ownership, as explained in a DFSA statement. These trades are viewed as potential market abuse, as they can distort the supply, demand, or price of an investment. In this instance, the trades led to a temporary 27% surge in share prices on the final day of trading.
According to the statement, Nasdaq Dubai had flagged the transactions as suspected wash trades to Al Ramz, but the company failed to report the activity to the DFSA, as required under Recognition Rule 3.4.5(1).
However, Al Ramz has contested the DFSA’s findings and referred the matter to the Financial Markets Tribunal (FMT). The tribunal will now review the case and determine the appropriate course of action, which may involve confirming, modifying, or overturning the DFSA’s decision.
The DFSA also emphasised the importance of having robust surveillance systems in place and reporting suspicious activities promptly to maintain market integrity and protect investors. Additionally, the DFSA has stated it will not make further public comments until the FMT concludes its review.